• Nigeria is banking on its burgeoning fintech space to increase financial inclusion and protect investors' funds.
  • The Securities, and Exchange Commission (SEC) has set up Fintech roadmap committee and Blockchain/ Virtual Financial Assets Working group to develop a framework to support innovation and regulation within the Blockchain and Virtual financial assets' space 
  • The group members include officials from the regulatory agencies, tech experts and the private sector.

The Securities, and Exchange Commission (SEC) has set up a committee to work on Blockchain and virtual financial assets framework of the Nigerian Capital Market.

In a document seen by Business Insider SSA, the Fintech roadmap committee and Blockchain/ Virtual Financial Assets Working group will develop a framework to support innovation and regulation within the Blockchain and Virtual financial assets' space taking into cognisance effective investor protection, financial market integrity, and financial stability. 

The work of the Fintech roadmap committee and Blockchain/ Virtual Financial Assets Working group

The committee, headed by Chuka Agbu, SAN, is also saddled with the responsibility of comparing global practices on regulatory taxonomisation and classification of Cryptocurrencies (either as Commodity, Securities or Currency) and recommend a suitable model for adoption in the Nigerian Capital Market. It will also advise the SEC on approaches and guidelines on how to regulate the financial technology industry.

Mary Uduk, SEC DG and other committee members
Mary Uduk, SEC DG and other committee members

The committee is comprised of officials from the regulatory agencies, tech experts and the private sector. They are expected to complete the assignment by the end of November.

Following the outcome of the report of the FinTech Roadmap Committee of the Nigerian Capital Market, the SEC said it will work with other regulatory agencies to create clear and specific licensing regimes for different FinTech businesses in Nigeria.

Nigeria ready to play actively in the fintech industry

The country is banking on its burgeoning fintech space to increase financial inclusion, protect investors' fund and align with global best practices. 

The fintech market is huge and about 36 million Nigerians are still without bank accounts. The Central Bank of Nigeria (CBN) has committed itself to reduce the population to at least 20% or 20 million by 2020.